ECN 211 Exam 1 Questions with 100% Correct Answers

Utility Correct Answer Pleasure or satisfaction obtained from consuming a good or service Economizing Problem Correct Answer Wants exceed means Economizing Problem Correct Answer Limited resources vs. unlimited wants Individuals Economizing Problem Correct Answer Budget Line Society's E...

True or false, because private businesses are unable to profit from them, public goods are often supplied at quantities that are less than desirable in the market. Correct Answer True A potential solution to the problem of the tragedy of the commons is assigning __________ to common resource pool...

Ten Principes Correct Answer Principle 1: People face tradeoffs Principle 2: The cost of something what you give up getting it Principle 3: Rational people think at the margin Principle 4: People respond to incentives Principle 5: Trade can make everyone better off Principle 6: Markets are usua...

Opportunity cost Correct Answer whatever must be given up to obtain some item Calculating opportunity cost Correct Answer what you give up / what you get The table above shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 800 bushel...

Economics Correct Answer the study of how society manages its scarce resources Macroeconomics Correct Answer the study of economy-wide phenomena (ex. the federal deficit, the rate of unemployment and policies to improve our standard of living) Microeconomics Correct Answer the study of how hou...